About this Show

Your Money

News/Business. Christine Romans breaks down the financial news of the week. New.

NETWORK
CNN

DURATION
00:30:00

RATING

SCANNED IN
Annapolis, MD, USA

SOURCE
Comcast Cable

TUNER
Port 1234

VIDEO CODEC
mpeg2video

AUDIO CODEC
mp2

PIXEL WIDTH
720

PIXEL HEIGHT
480

TOPIC FREQUENCY

Russia 6, Olympics 4, Google 4, Cisco 4, Zuckerberg 3, Directv 2, Underarm 2, Axiron 2, Glucerna 2, Apple 1, The Olympics 1, Jimmy Carter 1, John Carlos 1, Miller 1, Mark Zuckerberg 1, Matt Mccall 1, Chris Cuomo 1, Roger Goodell 1, Jesse Owens 1, Christine 1,
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  CNN    Your Money    News/Business. Christine Romans breaks  
   down the financial news of the week. New.  

    August 24, 2013
    9:30 - 10:00am EDT  

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the entire planet. >> they will use it to decide what kind of government they want and get health care for the first time ever and connect with families hundreds of miles away that they have not seen in deck kwreudz. >> "your money" starts right now. nasdaq shutting down. microsoft ceo stepping down. yahoo's myer upside down. technology rules the world and all of this, while mark says he wants to connect the world. humans don't know how to manage the risk created by the rise of the machines. so what happens if we wire the world? that's just one of the reasons i headed over to the "new day" set to speak with my colleague, chris cuomo, to learn what he
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learned directly from mark zuckerberg this week. he changed the world once and he wants to do it again. >> it's obvious to look at this, the growing market and the growing space, and mark zuckerberg says it's not about making money for him, it's literally about changing the world. here we use things like facebook to share news, and catch up with our friends, but there, they are going to use it to decide what kind of government they want, get access to health care for the first time ever and connect with family members hundreds of miles away they have not seen in decades. >> what about the how? how do you do this? how developed is the plan? >> we have a rough plan of what we need to do to pull it off, and the plan will evolve over time and we will get better ideas, if you look at the trends, data is becoming more available to people, and apps are more efficient to run and there are new business models to help people get online.
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>> it's also good for facebook and companies like that, because mobile access to the internet is where the business lies, right? >> if we were just focussed on making money, the first billion people that we connected with more money than the rest of the 6 billion combined, and it's not fair but it's the way it is. we just believe that everybody deserves to be connected and on the internet. we were putting a lot of energy towards this. >> there you have it. mark zuckerberg, he believes it's a tool, that everybody should have it, and what company they use is up to them. >> can you really do it? there are companies already trying to do it, and for example, google has balloons so they can bring activity after a natural disaster, for example, and companies scrambling to make a smart phone for less than $15, and a lot of companies out there trying to change and bring it about. can he do it?
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how mature is this idea? >> i think judging by what he said, it's in the stages, you have possibility and feasibility, and what takes him from one to the next, is how much skin there is in the game and playing against the inevitability of the change. the market must grow and people must get more involved with the access to the internet, and timeframe, and the period involved i think is a much more cloudy conclusion. you have to think 5, 10, 15 years. from the perspective of facebook, that's where your mission takes you anyway. >> he has so many social goals in his mission, but his social goals could become financial goals, and the more people who are connected and the more people on facebook, and the more you can ties to. >> great minds set all truism is often motivation.
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and that doesn't make it wrong. it would be nice if all business priorities worked that way, and i think that what we are also seeing in mark zuckerberg is personal maturity, and not even 30 years old yet but he is taking on what the significance of facebook is, and the issue of immigration, and he is wading into deeper waters that go beyond his business model. >> legacy. >> he did the movie of his life. he is doing well. >> thank you for joining us, and you also sat down with the president to talk about the cutting of college costs, and we will have a brand-new edition of "your money," 2:00 p.m. eastern, and anybody borrowing money at college or anybody that cares about the future of the workforce. coming up, a few of the founding fathers of tech, but now the boys' club has serious competition in facing the future. investors seem to love her, and
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fashion magazines are taking no tuesday, too, but is it worth your money to buy her company's stock? we play buy or sell next. my mantra?
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trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa.
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ask your doctor about the only underarm low t treatment, axiron. do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top. ♪ how did he not see that coming? what's in your wallet? how did he not see that coming?
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for a strong bag that grips the can... ♪ get glad forceflex. small change, big difference. stock kwroepbership in this country is at a record low, and a lot of people think the wall street is a big casino, and wall street wins already anyway. and the nasdaq shut down for three hours, and it did not help investor confidence at all. matt mccall, the nasdaq nightmare put everybody's retirement at risk, and how big of a deal when an american exchange goes down for three hours? >> it's a huge deal. no update in the three hours, traders were freaking out, and more importantly, the investor at home turned on the news at night and saw the headline, the nasdaq shut down, and there is a
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lack of confidence in the financial markets, and this adds to it, and the people at home, i don't trust anybody and i don't trust wall street already and now this happens. what do i do? do i get out of the market completely because i don't trust the system. >> sit the rise of the machines, electronic trader, or-speed speeders or high-tech exchanges, and humans can't monitor the risk? >> well, this is when humans come back, because if humans were there, they could sit there and take the trades and make a market, and i think it may be good longer term, and it makes people realize we need humans on the floor of the exchange. >> they were shut down on trading day for four hours, and i want to talk about the tech sector and how hot it is. the big old companies that make the hard well like dell, intel and microsoft, and those stocks have done well in 2013 but the
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companies are struggling to catch up to the cool kids, facebook, google and apple, and not all cool kids make things that come in a box, and all that innovation has tech investors, and let's play buy or sell? a new budget version, and a gold phone. here is the performance. look at that. buy or sell apple shares? >> this is a buydown here. you can see the bottom out in april and june, it's bullish. longer term, if you look at the fundamentals of apple, it's what is called the pay ratio, the p ratio over growth, and it's below 1 at .7. i think that, you know, at 525, 530, we see 700 in the last 12 months. >> you put this one up --
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>> it's a big buy for me. >> facebook, when it went public you were not interested at all and you changed your mind and since have bought the stock. i want to show you what the stock looks like this week. a great move. and rose to the price of 38 bucks, and are you still buying? >> i sold some right about there, because i took a bit of a profit, but i believe it's more up side on this, so i kept some facebook. if you are a new investor, buy in the high 30s. mobile went from zilch to 40% of revenue, and mobile users jumped 50%, and everybody is using iphone and tablet. they will take advantage of this. >> so you are a buy. the stock is up here for cisco. >> i am selling cisco. it's dropping off. this is looking to grow 4% of earnings next year, but trading like a text stock, and i get out of cisco. >> yahoo beat google in traffic,
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and that was the first time in two years. is yahoo a legitimate online company again? >> it looks good. i think in the layout, she looks good. they are both buys for me. i am buying yahoo. the name yahoo resinates big in the tech and search world. i think she is doing a great job. it's a great buy, around $27. >> and finally, google, tell me what you think about google? >> it's what you want it to be, driverless cars and you name it. i will buy google way down here ten years ago, and as you mention, look at 850, 860, and it's a great buy. i am buying tkpwaog that. >> let's recap. you say buy apple and facebook and yahoo and google, and cisco is your only sell here.
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you have two other bonus stocks, tech companies with a retail presence. >> netflix, because i think the cable box is done. time warner, cbs, and time debac debacle, and netflix is definitely in the future. did you see what i could buy on amazon? organic baby food or parts for my atv. they have cloud services offering right now, and i think amazon is a great buy. >> they spent millions of dollars on something that is becoming increasingly controversial, what that is and what the company should do about it next. that creates a moisture reserve so skin can replenish itself. aveeno® naturally beautiful results. mayo? corn dogs? you are so outta here!
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try zyrtec® for powerful allergy relief. and zyrtec® is different than claritin® because it starts working faster on the first day you take it. zyrtec® love the air. try capzasin-hp. it penetrates deep to block pain signals for hours of relief. capzasin-hp. take the pain out of arthritis.
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the 2013 nfl season less than two weeks away. imagine if you could log on to google to see your favorite teams. here is the score.
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tech log all things d, and roger goodell and others met with executives this week, and the nfl sunday ticket package, and directv has exclusive rights to broadcast every minute of every game, and google offers no comment on the report. and the nfl sunday ticket rights cost directv $1 billion a year, and subscribers pay $100 to $200 each season to watch. and then a new lottery system in place for the games in brazil, letting fans pick location, team and round. there is an 8-page instructions. and then finally, forget a few pairs of shoes. a free car or an unlimited supply of sports drinks, this
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guy got a helicopter to jump out of. and check it out, a backboard dive from 75 feet above the water, and he throws in a back flip for style points. a bigger event for corporate sponsors, just a few months away, the olympics. it's a time of celebration and competition and controversial. the nazi regime was in power, and african-american jesse owens wins four gold medals. 1968, mexico city, john carlos give the black power saw hraout on the podium during the national anthem, and they were expelled from the games. 1972, the massacre, israelis kidnapped and 11 athletes and coaches and judges were murdered, and 1980 in moscow, president jimmy carter calls for a boycott, and the soviet union responds by boycotting the 1984 games in los angeles, and next
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winter's games in russia, already deep in controversial. there is a law that bars the public discussion of gay rights and relationships, anywhere children might hear. it has been condemned as highly discriminatory. and it's putting corporate america in a tough spot. there was an article for the new yorker titled why the olympic sponsors should take an action on gay rights. and richard, i want to start with you. you write the participation of corporate sponsors these companies sign deals before president putin signed that law. why do you think -- what do you think these corporate sponsors need to do now? >> i think the point is, right, that nobody wants to penalize
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our athletes who work so hard to succeed, and most people believe we should, therefore, participate. but the corporate sponsors, i think because they've invested so much money in the games, some of which has gone to the russian government to set up the olympics, that they have earned the right to insist that russia comply with the policies that these corporations -- most of these corporations have, for their own employees, have non-discrimination. i think they have the power of persuasion. you also have the power of threatening to withdraw their sponsorship if russia doesn't change. >> so so many of these companies, bob, they've for years had policies that have been very open. and even, you know, moving faster than the government has on rights for couples in their companies, for their employees. would it be hypocritical for them, then, to continue sponsoring the olympics in a country that is going in a different direction? >> no, i don't think it would, christine, because the olympics are a big part of the brands of those companies that we're talking about. and they've all done the right
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thing inside their own companies with their employees, with their customers, with their constituents. for them to pull out right now, it would really have an impact on their brand. what they can do, though, as richard said, is to make some statements, make some comments about what they believe in and show the world. >> power of the press rerelief, not necessarily power of the dollar. i want you to listen to figure skater johnny weir. >> i believe our presence in russia will do nothing but help fight this law and help the lgbt community. >> we've also seen protests of the vodka boycott, people taking to the streets to pour out russian vodka. the prison break star went with miller. he came out and declined to speak at the russian film festiv
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festival. does an issue like this threaten the brands in russia at all? what are those executives talking about behind closed doors? >> they're talking about what they're going to do with their employees to reassure their employees that the policies they've put in place and earned their trust over the years are still their policies. they're going to separate the sponsorship of the olympics from any discussion of their internal policies, which they can do. remember, the olympics is a part of each of these companies' brand, and if they give up that podium, their biggest competitors will take the podium. >> i think it's interesting that so many of these companies have been so out for gay rights in this country, and then they find themselves supporting the olympics at the same time. president obama put a positive spin on the olympic controversy. >> one of the things i'm really looking forward to is maybe some gay and lesbian athletes bringing home the gold or silver or bronze, which i think would go a long way in rejecting the kind of attitudes that we're seeing there.
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>> what do you think? >> if they don't get out if front of this, if they don't put out the statements bob referred to, if they don't -- >> should they pull their money? >> i think they should threaten to pull their money. we'll have to see, but if there are massive demonstrations, if people are being arrested, if potentially athletes are being arrested, being associated with the olympics is not going to look like such a good deal. i mean, this law outlaws any kind of speech. so even if you wear a rainbow pin or if you hold hands with another athlete, are you going to be arrested in russia? that is not the kind of thing corporate sponsors want to be associated with. if you're running one of these corporate sponsorship programs, you have to now get out in front of it. >> nice to see both you guys. we'll continue to see how it unfolds. thank you so much, richard and bob. coming up, i'll introduce you to the safest car on the road and reveal why it's probably not in your driveway yet. with diabetes, it's tough to keep life balanced.
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i don't always have time to eat like i should. that's why i like glucerna shakes. they have slowly digestible carbs to help minimize blood sugar spikes. [ male announcer ] glucerna. helping people with diabetes find balance.
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ups will stop insuring
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15,000 of its workers, husbands and wives. they stopped insuring those eligible for insurance through their own employers. ups is blaming rising costs, in part thanks to obamacare. ups has said it will take care of its own but it shouldn't bear a burden that other companies can take on. give me 60 seconds on the clock. it's money time. it's back to school, but not for everyone. government spending cuts known as the sequester hit head start programs, eliminating 57,000 spots for preschoolers starting in the coming weeks. you might think flashy cars and clothes are the key to love, but it turns out saving is sexy. a new study finds that people are more attracted to savers than big spenders who might seem wasteful. google intends to help people
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save money with more than $50,000. the budget iphone. the lower cost option could boost apple's presence in china, the largest growing market for cell phones. the safest car on the road, the tesla model s. it earned the highest ratings in crash tests, and they said that's not only a perfect score but the highest score ever. kodak is planning to reinvent itself. don't expect to see those iconic rolls of film on shelves. it will now focus solely on printing. coming up on a brand new "your money" at 2:00 p.m. eastern, rainieining in the cos college. president obama wants you to get a better return on college. we'll break down his plan and what it means for parents and students. that's today on a brand new "your money," 2:00 p.m. coming up at